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<br />Electrical Deregulation <br />Page 2 <br /> <br />There are several options for the City of La Porte to handle the deregulation of electricity. <br />1. Don't do anything - We can always make any changes after January 1, 2002. <br />Pasadena ISD is taking this approach. <br />2. Self-aggregation - Invite Requests for Proposals (RFPs) for City facilities. <br />3. Buying Pool - Interlocal Agreement with at least one other governmental entity. The <br />other entity must be in Texas, but otherwise, there is no location restriction. <br />4. Political Subdivision Corporation (PCS) - Non-profit organization to aggregate the <br />load of different entities and purchase power on their behalf. <br /> <br />There are several organizations that are applying to become Political Subdivision <br />Corporations, including H-GAC, CCG Consultants, and Cities Aggregation Power Project <br />(CAPP). There are also several pilot programs requiring sign-up by March 15th or the very <br />near future, including Texas Electric Choice and Texas General Land Office. <br /> <br />The PCSs mentioned are contacting government entities to sign on with them as soon as <br />possible, with most having deadlines ranging from March to April. The immediate deadline is <br />to allow them time to send out RFPs to obtain pricing. However, a major problem appears to <br />be that the PCSs are also unclear of the future. They are unsure of contract lengths, how <br />REPs will respond, and what to charge for their service. The only fee I know for sure is <br />CAPP, who is charging a one-time fee of 1 % of the entity's 2000 electric bill. In our case, <br />the fee would be $9,687.45. If we join H-GAC our one-time fee of lh a percent would occur <br />($4,843.00). <br /> <br />RTH: su <br />Attachment <br />cc: Martha Gillett <br />John Joerns <br />